- 6 -
The Commissioner’s deficiency determination is normally
entitled to a presumption of correctness, Bone v. Commissioner,
324 F.3d 1289, 1293 (11th Cir. 2003), affg. T.C. Memo. 2001-43,
and the burden of proving the determination incorrect generally
rests with the taxpayer, Rule 142(a). However, when a case
involves unreported income and that case is appealable to the
Court of Appeals for the Eleventh Circuit, as this case appears
to be absent a stipulation to the contrary, the Commissioner’s
determination of unreported income is entitled to a presumption
of correctness only if the determination is supported by a
minimal evidentiary foundation linking the taxpayer to an income-
producing activity. Blohm v. Commissioner, 994 F.2d 1542, 1549
(11th Cir. 1993), affg. T.C. Memo. 1991-636; see also Golsen v.
Commissioner, 54 T.C. 742, 756 (1970) (Tax Court is bound to
apply the law of the circuit to which the case is appealable),
affd. 445 F.2d 985 (10th Cir. 1971). Once the Commissioner
produces evidence linking the taxpayer to an income-producing
activity, the burden shifts to the taxpayer to rebut the
presumption by establishing that the Commissioner’s determination
is arbitrary or erroneous. Blohm v. Commissioner, supra at 1549;
see also United States v. Janis, 428 U.S. 433, 441-442 (1976).
To satisfy his initial burden of production, respondent
introduced into evidence Form 1099-R, Distributions From
Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011